If you've been experiencing long load times for The Elder Scrolls: Oblivion, then it could be you have one of the rare cases of over-fragmentation of the hard drive. The idea here was to use the hard drive to substantially cache the data, therefore optimizing gameplay. However it turns out that some systems are getting bogged down by the move. Anything from menus to sounds can load too slow.
There's a harmless solution for this: "To solve this problem, reset your Xbox, and hold down the A button as the game is booting up. If any button is held while Oblivion is loading, it will clear its hard drive cache, and create a new one. Once you see the “Bethesda Softworks” logo video, the game is already loaded, and the cache should have been cleared."
Has anyone out there had this problem? If so, did this help?
Source : http://www.xbox360fanboy.com/2006/03/21/long-load-times-in-tes-oblivion-try-this/